Foreign funds net buyers in week ended Jan 27

UOB Kay Hian Malaysia Research expects Malaysian equities to be energised in 1H17 by a firmer ringgit and general election buzz.

KUALA LUMPUR: Foreign funds were net buyers on Bursa Malaysia in the week ended Jan 27 at RM110.3mil, offsetting a significant portion of the -RM143.0m outflow recorded the week before, says MIDF Equities Research.

It said on Tuesday that ahead of the Chinese New Year break, foreign investors increased their exposure to Malaysian equity, albeit moderately.

MIDF Research said foreign trading was active on Tuesday, as trading value exceeded RM1bil for the first time this year, but the momentum was lost as expected as the market edged towards
Friday. 

The heaviest foreign buying was recorded on Thursday, as net purchases surged to RM173mil, the second highest this year. It coincided with heavy buying in some markets in the region, notably South Korea and Thailand.

“Of significance for the local market is that foreign participation rate held up pretty well. Average daily trade value (ADTV) declined by only -2.3%, which is commendable as Bursa was open for trading only in the first half of Friday.

“As expected, retailers retreated significantly from the market, yanking out -RM142.5mil net, the highest weekly attrition since September last year. Participation rate, based on the ADTV fell 26% to RM412mil,” it said.